The Multilateral Investment Guarantee Agency can provide MNCs implementing direct foreign investment in less developed countries with:
A) insurance that covers losses on multilateral netting procedures.
B) exchange rate risk insurance.
C) political risk insurance.
D) guarantees that MNCs will receive the same taxation treatment by the host government as local firms.
E) guarantees of lines of credit provided by the World Bank if the MNC experiences liquidity problems.

Question

Quizplus · Accepted Answer

The Multilateral Investment Guarantee Agency provides political risk insurance to MNCs that are implementing direct foreign investment in less developed countries. This insurance protects against losses due to political events such as expropriation, war, and currency inconvertibility. The other options listed are not services provided by the agency.

The Multilateral Investment Guarantee Agency Can Provide MNCs Implementing Direct